HLE Glascoat, a player in chemical technology solutions, has announced its acquisition of a 70 percent controlling interest in the Heat Exchanger business of Kinam Engineering Industries. This strategic acquisition is set to occur in two phases.

Share Market Live

NSE

The first phase of is expected to conclude by the second quarter of FY2024 and entails an all-cash consideration of Rs 79.97 crore for the acquisition of a 35.56 percent stake. The remaining 34.44 percent stake will be procured through a scheme of arrangement, involving the amalgamation of Kinam's holding company into HLE Glascoat.

Himanshu Patel, the Managing Director of HLE Glascoat, stated, "This acquisition will foster synergies between our businesses, allowing us to drive operational improvements and deliver innovative solutions to our customers."

Kinam Engineering Industries is known for its global footprint, exporting to countries such as Germany, the Netherlands, Israel, and South America.

Furthermore, HLE Glascoat unveiled plans to introduce Thaletec's products in India. By integrating Thaletec Germany's manufacturing technologies, HLE Glascoat said it aims to enhance its product range, strengthen its local market presence, and provide customers with offerings under the Thaletec brand.

Patel also highlighted HLE Glascoat's product expansion efforts, including the launch of SS Reactors with an order book value exceeding 20 crore and the introduction of Pharma-skid and Chem-skid systems.

As of June's end, HLE Glascoat boasts an order book of Rs 551 crore, driven by new orders valued at over Rs 290.7 crore secured during the quarter.

This order book offers 5-6 months' visibility for the India business and 10-11 months' visibility for the Thaletec business, underscoring the company's stability and growth trajectory.

First Published:Sept 6, 2023 11:56 AM IST